00:00But behind the scenes, Singleton was struggling.
00:03Costco was losing money hand over fist and he didn't know how to stop it.
00:06So he went back to what had made Price Club successful and asked customers for their feedback.
00:12They told him that they loved the store, but they had one major complaint.
00:15The prices were too high.
00:17So Singleton did the unthinkable.
00:19He lowered prices even further, but it didn't help.
00:22Costco was still losing money.
00:24That's when Singleton had an epiphany.
00:26He realized that in order to keep costs down, he needed to cut out middlemen and buy products directly from
00:32manufacturers.
00:33He also realized that he needed to focus on efficiency and cut out any waste.
00:38By doing this, he would be able to pass the savings on to customers and finally turn a profit.
00:43It was a risky move, but it paid off.
00:46In 1985, Costco's profits increased by 14%, and the company went public later that year.
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